Selecting the mix of indirect compensation. This is often the "hidden paycheck." Communication is key here; employees often undervalue benefits if they are not educated on the cost to the employer.
┌────────────────────────────────────────────────────────────────────────┐ │ TOTAL COMPENSATION SYSTEM │ └────────────────────────────────────────────────────────────────────────┘ │ │ ┌──────────▼──────────┐ ┌──────────▼──────────┐ │ Direct Compensation │ │ Indirect Compensation │ └──────────┬──────────┘ └──────────┬──────────┘ │ │ ├── Base Pay (Salary/Wages) ├── Mandatory Benefits (Tax, Insurance) └── Variable Pay (Bonuses/Equity) └── Perquisites & Wellness Programs Direct Compensation developing and managing a total compensation system pdf
: Essential "safety net" offerings including health insurance, retirement plans (401k), and life insurance. Selecting the mix of indirect compensation